Social Security’s New Outreach to Individuals Potentially Eligible for Low-Income Subsidies

Effective January 1, 2006, a new Medicare Prescription Drug Program, also referred to as Medicare Part D, was launched. In addition to the prescription drug insurance the new program makes available to all Medicare beneficiaries, the program also provides subsidies – or “extra help”-- for those Medicare beneficiaries who have limited income and resources. These subsidies reduce out of pocket costs paid by those Prescription Drug Program (PDP) enrollees who have limited income (below 150% of the poverty line applicable to the size of the family involved) and resources (up to $11,710 in assets for an individual or $23,410 for a married couple in 2007 / up to $13,490 in assets for an individual or $26,970 for a married couple in 2008) by providing reduced monthly premiums and other cost-sharing assistance.

Additional subsidy resources, including an online tool that can be used to assess eligibility for the subsidy are also available. A copy of the subsidy application () itself, is available.

SSA continues our strategy to inform relatives and caregivers of low-income Medicare beneficiaries about the “extra help” available to assist them with the cost of the Prescription Drug Program.

To print your own copies of the current brochure, "I Helped My Mom Save $3,600 on Prescription Drugs. You Can Too!" click on the following links:

I Helped My Mom Save $3,600 on Prescription Drugs. You Can Too!

I Helped My Mom Save $3,600 on Prescription Drugs. You Can Too! (Spanish)

During May and June 2008, SSA will mail almost 5 million outreach letters to Medicare beneficiaries who are potentially eligible for Medicare Savings Programs (MSPs) or the Part D Low-Income Subsidy (extra help). This annual outreach, stipulated under Section 1144 of the Social Security Act, requires SSA to notify low-income Medicare beneficiaries each year about specific programs available to assist them with their medical and prescription drug expenses. The Centers for Medicare and Medicaid Services (CMS) joins SSA in this effort, with both SSA and CMS letterhead appearing on all notices.

The following links show three versions of the 2008 outreach letters:

* SSA-L446 – Mailed to beneficiaries whose countable income appears too high for the Medicare Savings Programs but not too high for Extra Help.

* SSA-L447 – Mailed to beneficiaries with countable income that appears to be less than 135% of the Federal Poverty Level; the beneficiaries have Extra Help but do not have a Medicare Savings Program.

* SSA-L448 – Mailed to beneficiaries with countable income that appears to qualify them for Extra Help and the Medicare Savings Programs but the beneficiaries have neither.

Also during September 2007, CMS notified about 448,000 beneficiaries to that they would no longer be automatically eligible for extra help, effective January 1, 2008. The CMS letter encouraged these beneficiaries to apply for extra help through SSA. As in 2006, SSA included extra help applications with the CMS notices.